Numerical taxonomy is a system of grouping species using numerical methods based on their character states. It involves assigning numerical values to characteristics, estimating resemblance between organisms, and performing cluster analysis to group similar organisms. The basic components of numerical taxonomy are operational taxonomic units, unit characters, and estimating resemblance between units. Hierarchical clustering is used to group units into a tree-like structure of clusters. While numerical taxonomy provides a standardized, quantitative approach, character selection can impact results if not done adequately.